Friary Retail Park, Exeter Street, Plymouth

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1 Open A1 (Non-Food) Retail Warehouse Park Freehold - For Sale

2 Drake Circus Shopping Centre INVESTMENT SUMMARY n Freehold Retail Warehouse Investment. n Prime accessible edge of town location. n Open A1 (non-food) retail planning consent on 77,657 sq. ft of accommodation with 352 car parking spaces (1:220 sq. ft). n Excellent tenant line up of Wickes Building Supplies Ltd, Dunelm (Soft Furnishings) Ltd and Pets at Home Ltd. n Current total income of 1,153,890 per annum exclusive, reflecting low average base rent of per sq. ft. n Asset management and redevelopment potential, giving opportunity to enhance income profile. n Offers invited at in the region of 13,625,000 to reflect a net initial yield of 8% assuming purchaser s costs at 5.725%.

3 LOCATION Plymouth is the major commercial centre for Devon and Cornwall, situated alongside the, approximately 44 miles to the west of Exeter. The links to the M5 motorway, 40 miles to the east. The city benefits from a direct train link to London (Paddington) with a fastest journey time of approximately 3 hours 45 minutes. Plymouth has a resident population of approximately 244,000 people and an estimated shopping population of 337,000 persons, ranking the city 22nd of the 100 PROMIS centres. This illustrates that Plymouth is dominant within its catchment area. Bude St Austell 6 PLYMOUTH Barnstaple Bridgend Newton Abbot Tiverton Exeter Minehead M4 Dartmouth M5 Exmouth Cardiff Weston-Super-Mare Bridgwater Taunton M5 A35 Bristol M5 Yeovil Dorchester Weymouth DEMOGRAPHICS In terms of expenditure, Plymouth ranks only second to Bristol and above Exeter, Bath and Cheltenham in the southwest region (source Experian 2007). In May 2008, the unemployment rate stood at 2.1% compared with the GB average of 2.2%. Levels of car ownership within the urban area and wider district area, are above the national average, with 48.4% of households within the urban area having one car, compared to the GB average of 43.8% (2001 census). The table below illustrates the weekly vehicle movements to Friary during January 2009 and compares this to the same peiod for The City s local economy, traditionally focused on the naval dockyard at Devonport, has experienced a renaissance in recent years. Today, the service sector accounts for around 80% of jobs, broadly in line with the top 100 PROMIS centres. The city has attracted major employers such as Orange, KPMG, British Telecom, Natwest, the Child Support Agency, BCC and The Land Registry. Weekly vehicle movements at the Friary 14,000 12,000 10,000 8,000 6,000 4,000 2, ,476 11,856 4,746 12/01/2009 5/01/ /01/ % 5.2% 162.9% Weekly National Change Weekly Friary Change Yearly Friary Change

4 SITUATION The park is located approximately half a mile to the east of Plymouth City centre on the north side of the (Exeter Street) and approximately 2 miles south west of the main intersection of the and the at Marsh Mills. The park occupies a highly prominent site and is on a slightly elevated position on Exeter Street giving excellent visibility to the units. TENURE The site is shown edged red on the scheme layout plan and is held freehold. B3396 W OLSELEY R OA D UN IO N STREET ALMA ROA D OUTLAND ROAD 6 PLYMOUTH CITY CENTRE B3240 T H E P A R B3250 DESCRIPTION The scheme was originally constructed in 1990 and comprised two separate units. In 2008 Unit A was subdivided to create two smaller units, which were let in accordance with the tenancy schedule to Dunelm and Pets at Home. Unit B is let to Wickes. The scheme now provides a total gross internal area of approximately 77,657 sq. ft and to the front and west of the units is a customer car park with 352 spaces equating to an overall ratio of 1 per 220 sq. ft. The Dunelm unit benefits from a trading mezzanine, incorporating a cafeteria area, of approximately 16,500 sq. ft. The Wickes unit benefits from a garden centre of approximately 10,000 sq. ft. FRIARY RETAIL PARK EX ETER R O A D K W A Y B3214 EMBANKMENT ROAD B3413 T H E P A R K W AY BI LLACOMBE R OA D Friary Gate Corporation Yard Exeter Street Sub Station Friary Park Friary Park Beaumont Road Surgery Totmill Road VIADUCT There is a concrete surfaced service yard to the rear of the Wickes and Dunelm units, accessed from a dedicated service road. The Pets unit has an open walkway service corridor to the rear of Dunelm. St Jude s Road

5 PLANNING The property benefits from an open A1 (non-food) retail consent, secured on appeal in September Detailed consent was granted for the erection of two non-food retail warehouses and garden centre, with associated car parking and service areas, in July Permission was given in February 2008 to external alterations to the ex-courts unit (Block A) including formation of new recessed entrances, additional fenestration, upgrading of eaves fascias and a provision of additional parking bays for disabled persons. SERVICE CHARGE The tenants are responsible for their due proportion of the service charge. A copy of the current years s/c accounts can be provided on request and the total property budget for year ending is approximately 42,500. Pets have a s/c cap in their lease so that the service charge will not exceed a fair proportion of 47,000 in year 1 and 51,000 in year 2. A Certificate of Proposed Lawful Use for the sale of pet food was granted on 15th July Copies of relevant documents may be provided on request. TENANCIES AND ACCOMMODATION The property provides the following approximate gross internal areas and is let in accordance with the tenancy schedule set out below. Unit Tenant Floor Area (sq ft) Lease Start Term Expiry Date Next Rent Review Rent (pa) Rent (psf) A1 Dunelm (Soft Furnishings) Ltd 29, *1 435,000 * *3 A2 Pets at Home Ltd 11, ,040 * B Wickes Building Supplies Ltd 36, , Totals 77,657 1,153, average Notes *1 Dunelm RR to lower of OMV or 2.5% pa compound. *2 Rent becomes payable with effect from *3 Dunelm rental 15psf based on floor area capped at 29,000 sq ft in lease. *4 Rental becomes payable with effect from The vendors will pay rental difference between completion and end of rent-free periods by way of a deduction from completion statement.

6 TENANT COVENANTS The most recent tenant s accounts are summarised below: Turnover Pre-Tax Profit Net Worth D&B Tenant Date ( 000 s) ( 000 s) ( 000 s) Rating Wickes Building Supplies Ltd , ,466 59,503 40, ,457 82,822 5A1 Dunelm (Soft Furnishings) Ltd , ,187 39,752 39,946 21,684 14,023 4A2 Pets at Home Ltd , ,233 38,948 32,169 11,950 7,400 3A2 Transit Way B&Q RETAIL WAREHOUSING IN PLYMOUTH There is a total, out of town, retail warehouse stock in the region of 1,090,000 sq. ft in B3413 B B3432 Plymouth, of which only 22% has the benefit of open retail consent, with 52% being bulky/restricted use and 26% in leisure use. B3396 Homebase 6 Toy R Us PLYMOUTH TOWN CENTRE B B3250 B3413 FRIARY RETAIL PARK B3214 Laira Bridge B3413 Marsh Mills Sainsburys Coypool Errill Apart from Friary, the only other open A1 retail park is Erril (64,600 sq. ft) to the east of the City near Plympton. This is a secondary scheme comprising an Allied Carpets, Focus and Homemaker, with current passing rents at 12 per sq. ft and leases expiring in The main bulky goods offer of approximately 155,000 sq. ft is situated at Marsh Mills, where phases 1 and 2 comprise of a Homebase, DFS, Furniture Village, Halfords, PC World, Land of Leather, Carphone Warehouse and Wickes. Rents here are set in the range of per sq. ft, depending on size. On Plymouth Road, east of Marsh Mills, Coypool, phases 1 and 2, provide further secondary bulky space let to B&Q, Comet, Currys, Furniture Land, Harveys and The Computer Shop. Rents range from to per sq. ft.

7 ASSET MANAGEMENT There is potential to improve the income further by capitalising on the open retail consent and seeking to downsize the Wickes unit or regear of the existing lease. A surrender of the Wickes lease could also be considered. The profile of the park could be further enhanced with a refurbishment of the Wickes unit along similar lines to the recent works on the Pets/Dunelm stores. A proposal to reduce the depth of the existing unit and create three new 10,000 sq. ft units has received a favourable response from the planners. There is potential for further development in the car park subject to the necessary consents and taking into account certain no-build areas. ENVIRONMENTAL A recent environmental survey of the site has been carried out and a copy is available on request.

8 PROPOSAL We are seeking offers in the region of 13,625,000 (Thirteen Million Six Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 8% assuming normal purchaser s costs of 5.725%. VAT The property has been elected for VAT purposes and VAT will therefore be chargeable on the purchase price. FURTHER INFORMATION For further information please contact: Colin Boote Partner Investment Green & Partners LLP 4 Gee s Court St Christopher s Place London W1U1JD Tel: Fax: colin.boote@greenpartners.co.uk James Baillie Peter Pain Tel: Tel: james.baillie@greenpartners.co.uk peter.pain@greenpartners.co.uk MISREPRESENTATION These particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but there accuracy is not guaranteed. The purchaser should satisfy itself as to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office. Adrian Gates Photography & Design